Naidu cabinet approves scheme for welfare of auto and cab drivers
Andhra Pradesh cabinet approves ₹15,000 aid for 2.90 lakh auto drivers, launching the scheme with ₹436 crore funding to support the sector.
The Andhra Pradesh state cabinet chaired by chief minister N Chandrababu Naidu on Friday approved yet another welfare scheme providing ₹15,000 each to 2.90 lakh autorickshaw drivers and cab drivers in the state, state information and public relations minister K Parthasarathy announced.

The chief minister will formally launch the scheme – christened as Auto Drivers Seva Pathakam – at a programme to be held in Vijayawada on Saturday. “The state government has allocated ₹436 crore towards the scheme,” the minister told reporters after the cabinet meeting.
While the previous YSR Congress party government distributed ₹10,000 each to 2.61 lakh auto drivers by spending ₹261.51 crore, the present Telugu Desam Party-led coalition government would be spending ₹436 crore to benefit 2.90 lakh auto drivers, he said.
The beneficiaries include 2,25,621 autorickshaw drivers, 38,576 passenger vehicle drivers and 38,576 moto cab drivers and 6,400 maxi cab drivers, he said, adding Visakhapatnam tops with highest beneficiaries of 22,955 auto drivers.
The cabinet noted that the state government had also reduced the green tax of ₹20,000 imposed by previous government to ₹3000. “The state government set up a special grievance handling system to solve the grievances of auto drivers in receiving the amount,” he said.
Among other decisions, the cabinet approved administrative sanction for the 4th phase flood damage repair works worth ₹449.92 lakh to ensure the critical safety and structural integrity of Prakasam Barrage and Diviseema region. “Already, in response to damages caused by last year’s floods, 517 works worth ₹107 crore have been taken up,” he said.
The cabinet approved inclusion of a Caravan Tourism initiative in the 2024–29 AP tourism policy. Across other states, there are 25 caravan parks and 150 caravans, but none was registered in Andhra Pradesh so far. “To promote the initiative, life tax rebates will be given for caravans, and stamp duty exemptions and incentives for setting up caravan parks,” Parthasarathy said.
The cabinet also decided to promote homestays and bed and breakfast (B&B) facilities in the state, especially in temple towns where large hotels are absent. The cabinet approved a policy framework in this regard under the 2024–29 A.P. Tourism Policy. Permissions will be granted for homestays with up to six rooms, he said.
The cabinet approved withdrawal of 343.36 acres of land from the previous land acquisition notification in Amaravati capital region and initiation of necessary legal measures in this regard.
It also decided to authorise commissioner of AP capital region development authority (APCRDA) to file land acquisition proposals before the Guntur district collector under the land acquisition act of 2013, wherever required, to complete pending allocations for Amaravati projects, institutions, and returnable plots.
The cabinet also decided to extend government guarantee for AP State Cooperative Marketing Federation Ltd (AP MARKFED) to secure an additional ₹1,000 crore working capital loan from the National Cooperative Development Corporation (NCDC).
“The funds will be transferred to AP State Civil Supplies Corporation Ltd. (APSCSCL), Vijayawada, as an inter-corporate loan, to clear paddy procurement dues. This year, the government procured around 53 lakh tonnes of paddy, ensuring 95% of payments were made within 24 hours,” the minister said.